Default Rights

Equipment Trust Bond (ETB)
An Equipment Trust Bond (ETB), also known as an Equipment Trust Certificate, is a type of bond issued primarily by transportation companies to finance the purchase of new equipment. Importantly, the bondholder has the first right to claim the equipment if the issuer defaults on interest and principal payments.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.